The Labour government’s proposed Employment Rights Bill and"Make Work Pay" plan are commendable steps towards enhancing workers'rights. However, the government must first address the distressed employment tribunal system, which is currently failing both employers and employees.Without urgent reform, delays and inefficiencies will continue to undermine the delivery of workplace justice, eroding trust in the system and the effectiveness of any new employment rights.
Recent Ministry of Justice data reveals a worsening backlog in employment tribunals. Between April and June 2024, open cases rose by 18%, while case disposals fell by 4%, marking a 4% annual increase in the total caseload. Tribunal disposal rates are now at their lowest since the pandemic, with many cases facing delays of up to two years before a hearing.
For employers, this backlog brings significant financial and operational challenges. Prolonged cases escalate legal and administrative costs, while the pressure to settle early to avoid delays can result in higher-than-necessary payouts. Businesses also face operational disruption, as resources are diverted to manage disputes, and witnesses experience stress or reduced productivity.The reputational damage from unresolved disputes can complicate recruitment efforts and strain workplace morale, particularly for SMEs, which often lack the resources to absorb such challenges.
Employees face equally significant burdens. Delayed justice leads to financial strain, particularly for those without income while awaiting resolutions, and the prolonged uncertainty takes a toll on mental health. Evidence deterioration due to fading memories or lost documentation can further weaken cases. The backlog also exacerbates workplace tensions, reducing trust between employers and employees. For many, the delays force compromises, such as accepting inadequate settlements, simply to move forward.
The growing backlog underscores the urgent need for systemic reform to ensure timely and fair resolutions. Without a functioning tribunal system, both employers and employees are left grappling with financial, operational, and emotional burdens.
The government’s focus on workers' rights is important, but meaningful change starts with fixing the tribunal system. Addressing the backlog will not only restore trust but also provide a solid foundation for implementing new employment policies effectively.